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Market Observations

Posted: April 3, 2014 

The Nantucket real estate market is off to a strong start in 2014, led surprisingly by sales of homes between $2 million and $4 million.   

This segment of the market struggled last year, with just a single sale in that range during the first three months of 2013. For the year, it was down 50 percent compared to 2012, which in my mind was startling.

But 2014’s fast start has been buoyed by 19 sales in the $2 million to $4 million through March, including Great Point Properties’ sales of: 

  • 5 Pilgrim Court, $2.75 million
  • 86 Madaket Road, $2.35 million
  • 13A & 13B Kimberly Way, $2.1 million
  • 70 Vestal Street, $2.39 million

So in that segment, the market is way ahead of last year. It’s significant, and it seems it could very well be a trend worth watching. 

While the media and others tend to focus on the dollar volume of sales, a more important indicator to watch is the number of transactions. By that measure, the market is well ahead of last year’s pace. Through March, there have been 71 sales on Nantucket, compared to 57 during the same period in 2013.

In addition to the $2 million to $4 million segment, the market has also been bolstered by sales of homes between $1 million and $2 million. The first three months of 2014 have yielded 38 sales in that range, compared to just 11 at this point last year.

Meanwhile, properties sold in 2014 have spent an average of just 129 days on the market, versus the 227-day average for sales in 2013, another positive trend.

Island vacation rentals are also booking at a steady pace, similar to that of 2013, Great Point Properties’ sales and rental broker Laura Fletcher told me. 

“The high-end is the first to go, and there’s not enough inventory to meet demand,” Fletcher said. “People are seeking amenities: pools, updated and streamlined furnishings. The good news is there’s still availability for July. But August is the first to go. We start to field requests for August in early fall.”

 

GPP